Before one on the ABC procedure dies more exactly is necessary the understanding of the traditional
cost calculation procedure.
The procedure of the traditional cost calculation implies the allocation of the indirect costs to
the products in two different steps: In the first step the indirect costs of the individual production departments are identified,
while in second the indirect costs of the different production departments cumulated are assigned to the individual products
after in advance certain accounting rules. 88
Illustration 6 is considered as example.
Fig. 6: The two-stage Allokationssystem of the traditional cost calculation. 89
All traditional procedures for the computation of the indirect costs are based on the production volume, that again a direct
function of the direct personnel working hours, which is direct wage and salary costs and the machine working hours.
If the indirect costs would depend directly on the production volume, they were assigned with the traditional procedures accurately
to the products. If however the indirect costs are determined rather of other factors than by the output, the traditional cost
calculation leads to distortions. 90
Also the ABC basic concept corresponds to a two-stage procedure. In the first stage all resources costs are called, assigned to
production and business processes, also activity centers.
Examples of production processes are the pressure, the assembly, etc.; Business processes represent however the selling, marketing, etc.. In contrast to the first stage, which does not differ much from the traditional
procedure, the second stage is a special characteristic of the ABC.
Here the costs to the products or customers on basis, added
to the activity centers, are assigned their activity consumption. 91
Illustration 7 illustrates these circumstances on the basis an example.
Fig. 7: ABC Allokationssystem. 92
88 Vgl. Atkinson/Banker/Kaplan/Young (1997), P. 278-279.
89 ajar on: Atkinson/Banker/Kaplan/Young (1997), P. 279.
90 Vgl. Kennedy (1996).
91 Vgl. O'Guin (1991), P. 41-42.
92 ajar on: O'Guin (1991), P. 42; Cooper/Kaplan (1998), P. 116.